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Zimbabwe has announced a price freeze on goods and services
and ordered the companies to return to the prices obtained on March 25, 2020,
just before the country entered a national blockade.
At a meeting attended by representatives of the
manufacturing and retail sector, vice president Kembo Mohadi, who is also president
from the Covid-19 working group, said the country has been experiencing an escalation
food prices that have made essentials inaccessible to many.
Prices through the roof
Said a survey by the Ministry of Industry and
Commerce showed prices had risen as much as 42% between the end of February 11
and April 11.
He said that the price freeze was agreed by both governments.
and business.
“There was general agreement among multisectorial
partners that price increases, particularly during the closing period, were
speculative and unjustified.
“So, multi-stakeholder stakeholders committed to
price moratorium based on prices applicable on March 25, 2020 ”
Mohadi said.
The moratorium will apply to all players in the value chain.
This decision was supported by the Cabinet and will take effect immediately.
said.
Market watchers said the price increases were driven by
uncertainty about falling Zimbabwe dollar exchange rate and food
shortage
Between March 30 and April 22, the Zimbabwe dollar lost half
its value, falling from a fixed official exchange rate of 25 to the US dollar,
at 50 per US dollar.
This, observers say, has pushed up food prices in the longest time.
7.7 million people are already said to be food insecure.
